Why ShareMaestro Works

ShareMaestro works because the market is inefficient. Short-term stockmarket performance is driven by fear and greed. These emotions can create extreme prices which present investment opportunities for the intelligent, informed investor. Human nature invents reasons to justify the extremes - especially if this confirms the view of the herd.

ShareMaestro provides a welcome reality check by calculating rationally the true value of shares. These values can highlight areas of great profit potential. Similar to the factors which the Nobel Prize-winning Black Scholes system uses to value equity options , ShareMaestro values UK cash equities both from the characteristics of the equities and from economic & market factors.

Recent history shows the fear/greed syndrome at work *:

■ At the end of 1999, the FTSE100 was driven by greed and dot.com fever up to 6930. The
ShareMaestro valuation was just 3942.

■ In the next 39 months the FTSE100 duly crashed, losing more than half its value to 3300. By
this stage the ShareMaestro valuation had risen to 4957. Fear had driven the price too low.

■ In the next few years the FTSE100 soared, as predicted by ShareMaestro. It exceeded the
trough valuation within 2 years.

Although the City employs many bright fund managers and analysts, the herd instinct ensures that greed and fear overcome reason. This explains why, in the boom times, most large banks undertook such risky loans and investments - which have ended up effectively destroying many of these institutions. "Everyone is doing it - so it must be all right".